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Vietcombank awaits HoSE to name bond prices
Vietcombank is waiting on the Ho Chi Minh City Stock Exchange to officially announce the price of its convertible bonds, according to the bank’s website.
The bank’s convertible bond price is set by the average share price of its initial public offering (IPO), 107,860 VND (6.74 USD) per share.
On February 1, however, Vietcombank general director, Nguyen Phuoc Thanh revealed that as much as 97.7 percent of investors had paid for their shares in full. Stock authorities must therefore recalculate the average price of its IPO.
“Our mission is close to being accomplished, but there is nothing more we can do,” said Nguyen Bich Lien, director of Vietcombank Securities. “It is HOSE’s responsibility to figure out a new winning price.”
Registration to buy Vietcombank shares can be made from February 18 to 22. For further information see www.vietcombank.com.vn/news/ .
After the registration period bondholders will not be allowed to carry out further transactions. Their seven year convertible bonds will then become common bonds with an annual interest rate of 6 percent versus 8.5 percent for convertible bonds.
The common bonds will mature by 2012, bondholders are prevented from paying up before this time. All trading of Vietcombank common bonds must be carried out at a Vietcombank branch.
In 2005, the bank sold 13.65 million convertible bonds worth 100,000 VND (6.25 USD) each. Even though Vietcombank did not confirm conversion rates initially, the bonds were so sought after that some investors offered to buy them with zero percent interest.
Meanwhile, Vietcombank shares on the OTC market were trading a little under 99,000 VND a piece on February 4, below their IPO’s lowest winning price of 102,000 VND.
VNN
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